How to add liquidity for $BOO

A step-by-step on how to contribute to the $BOO-$SOL Raydium pool.

Chopp_Sueyy
3 min readAug 8, 2023

For a more thorough read on liquidity pools, read this article here.

Step 1 Transfer $SOL

Buy or send Solana to your Phantom, Solflare, or xNFT Backback if you’re a legend. Make sure you have a 1:1 ratio of assets for the pool.

Step 2: Determine which liquidity approach

Go to Raydium’s website and go to the “Liquidity” tab and review Liquidity Guide before proceeding with providing assets. Choose whether you want to provide

1.) Traditional LP

Traditional LP

or

2.) Concentrated Liquidity

— Traditional LP

Currently adding 1 SOL and 3,121 $BOO into the pool which is now 2.83% of the current liquidity pool at a 1:1 ratio for $BOO in the current price range, giving me 2058 LP tokens. Typically in traditional DeFi, you can double-dip the LP tokens and lock them up for further rewards. Make sure to do all necessary research and manage risk accordingly before deciding to lock up LP tokens.

How 2 LP: by Chopp_Sueyy

— Concentrated Liquidity

Determine which pool suits your risk vs ROI

Determine price threshold

The higher the minimum price, the more $SOL you will need to add in pair to equate a 1:1 of your minimum price point. The wider the range, the more conservative your approach. The more condensed your range sticks, the higher chance of losing ROI if trading passes outside of your selected range. If this happens, you will have to re-manage your assets and balance your portion of the pool to regain your trading rewards. If you want to hedge the token you can provide liquidity on the lower end and collect more SOL.

A minimal CLP contribution
How To deposit CLP video

Receive Placecard NFT

Self-explanatory

Do not burn — as stated or you will lose your portion of the concentrated liquidity pool.

You can however send it to a different wallet for example if you are on mobile and create a healthy pool you would like to send it to your ledger.

Keep in mind whoever has the place card NFT will be able to withdraw the assets from the pool.

In short, slippage is the difference between the expected price and executed price. Slippage percentage shows how much the price for a specific asset has moved. For lower market cap tokens, the volatility of price action vary significantly with every trade, and while this might provide a decent opportunity for arbitrage, it becomes a hurdle to pass in growth without proper stability over the trading pools ensuring proper liquidity.

Hope you enjoyed the 1st of many articles by the Horns & Halos DAO — HH. Written by Chopp_Sueyy & Noamtal

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Chopp_Sueyy

Blockchain Student @UCLAextension | | AeroSOL Enthusiast | | Copywriter/Admin | | Collector ||